SGH Ltd. and Steel Dynamics Inc. have increased their acquisition proposal for BlueScope Steel Ltd. to A$32.35 per share, placing the target's enterprise at A$15 billion (US$11 billion). The amended bid follows an earlier offer of A$28.35 per share that BlueScope declined last month.
The bidders described the latest cash proposal as their "best and final" price in the absence of a competing bid. Compared with BlueScope's share metrics at the time of the initial proposal, the new offer equates to a 47% premium to the company's adjusted closing share price and a 56% premium to BlueScope’s 52-week volume-weighted average share price.
Under the structure presented by the two parties, SGH - which is controlled by billionaire Kerry Stokes - would retain ownership of BlueScope's Australia and Rest of World operations. Steel Dynamics (NASDAQ:STLD) would acquire the North American business.
SGH said the acquisition fits within its capital allocation priorities and presents an opportunity to enhance performance using its operating model. For Steel Dynamics, the proposed transaction would dovetail with its existing capabilities across steel production, coating, metals recycling, and building products platforms.
The offer is non-binding and remains subject to customary conditions, including completion of due diligence, receipt of regulatory approvals, and approval by BlueScope shareholders. The joint statement from the bidders added that they do not expect any material regulatory hurdles to completing the transaction, but the documentation leaves the outcome contingent on those approvals and shareholder consent.
The increase in the proposal follows BlueScope's rejection of the initial A$28.35 per share approach, and the bidders have framed the revised figure as their ultimate price absent competing proposals. The deal plan would split BlueScope’s global footprint between SGH’s retained operations and Steel Dynamics’ acquisition of North American assets.
Next steps for the proposal include the completion of due diligence and the pursuit of the necessary regulatory and shareholder approvals before any binding agreement could be executed.